Shares in Millennium BCP jump 4.7 percent on expectations that a 500 million euros cash call for Portugal's largest-listed bank by assets will be successful, with a report suggesting Belgium-based insurance group Ageas
participated in the capital increase and will become a key shareholder.
BCP is expected to announce the cash call results tomorrow.
"We don't know the numbers yet but it looks like the capital raise went well and the worst case scenario of the state entering the bank's capital was averted," says Gualter Pacheco a trader at Porto-based GoBulling broker house.
He adds that if Ageas does become a shareholder in BCP it will be good news for the Portuguese stock. Diario Economico reported on Monday the insurance group bought a significant stake in BCP.
BCP's stock rises to 0.067 euros, a one-week high, outperforming Lisbon's PSI 20 index, which is 0.1 percent lower.
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Keywords: MARKETS EUROPE/STOCKSNEWS